For many Indians aspiring to pursue studies abroad, it is not the tuition fee that proves to be a thorn in the side. Living costs in countries like the U.S., Canada, Australia, and the United Kingdom are exorbitant, and a lack of regular income only complicates matters.
The options for those without the financial backing of their parents are limited—save enough before the start of the course, get a scholarship, or get a part-time job.
Mumbai resident Suraj Pillai plans to pursue an MBA in Canada in 2021 and is confident of securing a loan to fund the tuition fee. For his living costs, though, he anticipates that he will need to save up over the next two years and probably take up a part-time job.
Based on his interactions with friends who are pursuing their studies abroad, he has estimated that he will need to save Rs 5 lakh to tide over at least the first year.
While he's already saving about half of his monthly income at Rs 13,000, the problem with that is a portion it is going towards tax-saving instruments and life insurance premia, and he will most certainly fall short of his goal.
On this episode of BQPortfolio, Certified Financial Planner Arvind Rao tells Suraj how to juggle his investments to meet his goal.
The first thing he has to do is discontinue his systematic investment plan that's going towards an equity linked savings scheme. That's because every instalment of this SIP will be locked-in for a period of three years, so he won't be able to use any of it for his stay in Canada.
Watch the full episode here:
Watch all case studies of BQPortfolio here.
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